Question #$1(36$ marks$)$

SMU Corp. reported net Income of $$30,000$ for $2024.$ Income tax rate during $2024$ is $30\%.$

On January $1^{st},2024,$ there were $10,000$ common shares outstanding. On April $1^{st},$ the firm issued $1,000$ shares. On October $1^{st},$ the firm repurchased $500$ shares.

SMU also had $1,000$ shares of preferred shares. Each preferred share pays a dividend of $$2$ per year, and is convertible into $5$ common shares.

During $2023,$ SMU issued $$60,000$ bonds with $10\%$ interest rate. Each $$1,000$ bond is convertible into $12$ ordinary shares. These bonds are outstanding for the entire $2024.$

Finally, SMU has $3,000$ options with an exercise price of $$35$ outstanding. Over the year, its market price averaged $$50$ per share.

Required:

Compute SMU's basic EPS for the year ended December $31,2024(12$ marks$)$

Compute SMU's diluted EPS for the year ended December $31,2024(24$ marks$)$